Warming Up to Qualcomm

By

Gary Morrow

| Nov 12, 2012 | 2:47 PM EST

Qualcomm (QCOM) is firming up following last week's powerful surge. On Thursday the stock opened with a powerful, 8% gap higher after the company reported an earnings climb of 20% Wednesday night. The move completely reversed an ugly pre-earnings close the day prior, and the stock was extremely active during the session: Positive trade reached its second-heaviest reading of the year. By the settle, the stock had given back half of its early surge, but it managed to close more than 4% higher on a day the Nasdaq Composite dropped 1.4%.

Back in late September, Qualcomm had put in a significant top, and the stock had lost its upside momentum despite an impressive breakout move Sept. 13. A week later, shares had rolled over after they fell just short of filling the major breakdown gap that had been left behind last spring. Three weeks into the selloff, the stock easily sliced through its supportive 200-day moving average....265 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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